SK Hynix reported a significant increase in profits for Q2 2023 due to rising demand for AI memory chips, particularly from Nvidia.
SK Hynix Quarterly Profit
SK Hynix reported an operating profit of ₩9.2 trillion (approximately $6.7 billion) for the second quarter, a 68% increase compared to the same period last year. The company's revenue rose 35% to ₩22.2 trillion (about $16.1 billion), exceeding analyst forecasts.
Outperforming Samsung in Sales
SK Hynix has outsold Samsung Electronics in advanced memory sales for the second quarter in a row, primarily due to its status as the leading supplier of HBM chips to Nvidia. The company noted increasing investment in sovereign AI as a future source of demand.
Market Outlook for Memory Chips in 2026
Despite SK Hynix’s momentum, analysts caution about potential risks ahead. Goldman Sachs downgraded the company’s rating from 'Buy' to 'Neutral', highlighting the potential for HBM prices to decline due to increasing competition.
The AI chip market showcases strong growth, making SK Hynix and Nvidia key players. However, rising competition and potential changes in customer strategies could pose challenges for the company's future earnings.
